Some CEOs Run Multiple Companies. Should They?

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CEO,Elon Musk,Steve Jobs

I use behavioral science to figure out why we do what we do — especially when it comes to poor health decisions.

, researchers from TU Dortmund University in Germany and HEC Lausanne in Switzerland examined how some people come to hold multiple CEO positions — which is extremely unusual — and more importantly, how they legitimize these highly unorthodox arrangements to investors and stakeholders.

We need to look at this phenomenon through two lenses. First — can they do it? And secondly — should they do it?of companies on the leading stock indexes was at a five-year high last year. If the burnout doesn't get to him or her first, there are several serious roadblocks they'll encounter along the way.

In Musk's case, he had so much legal control over Tesla's board that he had the authority to appoint himself CEO while remaining CEO of SpaceX. The other CEOs chosen weren't in that privileged voting position. They did, however, have meaningful prior involvement in both firms, so employees at the second firm where they took on the CEO mantle already identified with the CEO.

 

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